The Wisdom of Comrade Xi.

"Eat bitterness."

1. Dutch senators have approved a major overhaul of the country’s pension system in a move that is expected to lead to big changes in asset allocation for the €1.45 trillion sector. The new law was passed late yesterday after lengthy debate in the senate, the Netherlands’ upper house of parliament. It means that the country’s occupational pension system will move from a “defined benefit” to a “defined contribution” model in which pension funds no longer make retirement income promises to members. Instead, members will pay into individual accounts, with income levels more dependent on investment returns and contributions. Funds can also offer collective DC arrangements, which aim to smooth out investment volatility for individual pension holders. The deadline for the system to be fully in place is 2028. “This is a once-in-a-generation event,” said Onno Steenbeek, managing director for strategic portfolio advice at APG Asset Management, the country’s largest pension fund manager with €541bn of assets under management. Indeed it is. (Source: ft.com)